23 Mar Hellman & Friedman in largest ever application security com…
American private equity firm Hellman & Friedman (H&F) has completed the acquisition of Checkmarx from Insight Partners, making this the biggest ever application security company buy-out.
The takeover has been valued at USD 1.15 billion.
In February, Kronos and Ultimate Software, of which H&F held controlling shares in both, merged their respective businesses, following which H&F became the controlling shareholder in the combined entity.
Simpson Thacher & Bartlett, which acted as legal counsel on the merger, has also been called into play for H&F on the Checkmarx acquisition. Tel Aviv-headquartered law firm Herzog, Fox & Ne’eman advised Checkmarx, while Willkie Farr & Gallagher represented Insight Partners.
RBC Capital Markets acted as lead financial adviser to H&F, as it also did on the Kronos-Ultimate merger.
Checkmarx specialised in software security, data protection and cybersecurity measures, and Insight Partners, founded in 1995, is a private equity and venture capital business, invests in high-growth technology companies.
Checkmarx is the most recently established of the three companies, founded in 2006 at the hands of founder and chief technology officer, Benzaquen Siman, and CEO, Maty Siman.
“With more corporations leveraging software development to scale their businesses than ever before, executives are acutely aware of the increased risks caused by software exposure,” explained Benzaquen, in a statement, adding that the partnership with H&F will take “our software equals security vision to the next level”.
H&F partner, Tarim Wasim, noted: “As cybersecurity threats continue to intensify, we strongly believe that embedding security early in the software development lifecycle is critical.”
“Only one company – Checkmarx – has the breadth of products, developercentric DNA, and culture of relentless innovation to serve the entire software security market.”
Insight Partners’ managing director, Richard Wells, also commented that “even before we invested in the Company in 2015, we have been continuously impressed by the leadership”.
Following the transaction’s closure, which is subject to meeting customary closing conditions, Insight Partners will retain a significant minority stake in the new company.
RBC Capital also acted as financial adviser to Mosaic when it merged with Utah-headquartered Vivint Smart Home in January.